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‘Astounding’ $575 Million Crypto Fraud Yields Arrests in Estonia

Nov. 21, 2022, 8:03 PM

Two Estonian men arrested in their nation’s capital were charged in the US with defrauding hundreds of thousands of people worldwide in a $575 million cryptocurrency fraud and money-laundering conspiracy.

Sergei Potapenko and Ivan Turogin, both 37, persuaded victims to enter into fraudulent rental contracts for crypto mining equipment and to invest in a virtual currency bank that wasn’t really a bank, the Justice Department said Monday in a statement.

In an indictment unsealed in Seattle federal court, Potapenko and Turogin were also accused of using shell companies to launder the fraud proceeds through at least 75 real estate ...